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Judgment
This Writ Petition was moved urgently by the Petitioners and we granted Mr. Shroff, learned Senior Counsel, liberty to mention it at 5 O'' clock yesterday and today at 3 O''clock considering the urgency.
Leave to amend in terms of draft amendment tendered in. Amendments to be carried out within 10 days from today. Service on added Respondents is dispensed with as no relief is claimed against them. They are formal parties.
By this Writ Petition, the Petitioners, inter alia, pray that there are eight notices which have been sent and copies of which are at Annexure "C", Annexures H-1 to H-8, Annexures I-1 to I-4 and Annexures M-1 to M-8. The grievance of the Petitioners is that the bank accounts have been frozen and attached with a view to recover the dues of the Department of Sales Tax, that is in relation to sales effected. The Petitioners claim that they are not dealers under either of the Acts, namely Maharashtra Value Added Tax Act, 2002 and the Central Sales Tax Act, 1956.
We are not concerned in this case with merits of the controversy as the prayer is restricted to raising of the attachment and release of the bank accounts.
The Petitioners have been served with copies of the Demand Orders and the Petitioners claim that they have several contentions which they would raise in appropriate proceedings to challenge these Demand Orders. However, they had entered into correspondence with the Department in order to obtain the requisite details and documents based on which the orders have been passed. The Petitioners claim that they are not in a position to file the Appeals in the absence of these documents and some of which have been relied upon to confirm the demand.
Mr. Shroff submits that the Petitioners would immediately file the statutory Appeals. They would also apply for appropriate interim orders therein. However, the bank accounts be released from attachment in order to enable the Petitioners to carry on their business.
After the Writ Petition was heard for some time, and Mr. Sharma appearing for the Respondents raised the serious apprehension about the dues of the Revenue being secured, that we called upon Mr. Shroff to indicate as to how the tax liability would be secured.
On taking instructions Mr. Shroff submits that the sum of Rs.8,00,00,000/- has been deposited in cash and out of total tax liability of Rs.23,45,39,563/-, that is tabulated by the Petitioners, and table/chart has been handed over together with copies of the final notices of assessment under the Central Sales Tax Act, 1956. The figure as derived by the Petitioners has not been confirmed in its entirety by the Asst. Commissioner of Sales Tax (Investigation)-15, Mumbai. According to the Department the sum due and payable is Rs.17,72,01,194/-.
While we take both charts/tables on record, we are not expressing any opinion on the amount which is stated to be outstanding or due or payable by the Petitioners.
After hearing both sides at some length, we are of the opinion that the following order will not only serve the ends of justice but also balance rights and equities. Hence the order:
(a) The Accounts with the Banks, which are added as Respondents 4 to 8, shall be released from attachment, provided the Petitioners maintain the balance or the sum of Rs.10,00,00,000/- in their Bank Account No. 5640500166 with the ICICI Bank Ltd. (added Respondent No. 8), Millenium Business Park, Sector-3, Building-2, Unit-8, Mahape, MIDC, Navi Mumbai-400701;
(b) This sum shall be maintained by the concerned Bank until the Petitioners file Appeals and apply for interim reliefs so also obtain appropriate orders and directions therein;
(c) We accept the statement of Mr. Shroff, on instructions, that the Petitioners would file statutory Appeals and obtain appropriate interim reliefs within a period of four weeks from today;
(d) Needless, therefore, to clarify that this amount shall be maintained in the said Bank and in the above Account No. for a period of minimum six weeks and thereafter to abide by orders and directions from the appropriate Courts/Authorities;
(e) If the Appeals are filed and applications are made within the time aforesaid, we expect the State Government not to raise a plea of limitation and equally the Appellate Authority not to dismiss the Appeals, if filed, only on the ground of limitation;
(e-i) If the Appeals are not filed or filed, but no interim orders are passed or obtained by the Petitioners, the Revenue/Department is free to recover the sums due and payable in accordance with law and if permissible by attachment of all Bank Accounts;
(f) The Petitioners shall be given an opportunity, in the event compliance is made with the aforesaid, to argue their applications for interim reliefs on their own merits and in accordance with law.
(g) The Petitioners undertake to this Court that they will make good the deficit, if any, in the Account No. stated above with the ICICI Bank (Respondent No. 8), if the same falls short of Rs.10 crores. Let the Petitioners do that first and thereafter the Bank Accounts with the ICICI and other Banks can be allowed to be operated. The Petitioners can be allowed to operate the Bank Accounts so as to transfer the sums in the above Account No. and our order passed in the above terms shall not affect this arrangement or the inter-bank transfer or inter-account transfer.
(h) We clarify that in this Writ Petition we have not expressed any opinion on the rival contentions and each one of them shall be raised at an appropriate stage before the appropriate Authorities. This order is without prejudice to rights and contentions of both sides.
(i) Writ Petition is disposed of.
All concerned to act on copy of this order duly authenticated by the Court Associate.